Bandhan Bank. Buy. Strong start to current fiscal!! Initiating Coverage. LKP Research. Industry: BFSI

Similar documents
Indostar Capital Finance

LKP Bytes. Lakshmi Vilas Bank Outperformer. April 10, Q3 Financial Performance. Industry: Banking

LKP Bytes. Karnataka Bank. Outperformer. August 11, LKP Research. Industry: Banking

LKP Bytes. Federal Bank. Outperformer. July 5, Advances. Deposits. LKP Research. Industry: Banking

Federal Bank. Buy. The new old private sector bank. Company Update. Current valuations offer decent upside. LKP Research.

All the more bullish, TP upgraded

Vadodara II PPA yet to be signed; TP revised upward to Rs126 on FY19x

RESEARCH. Investment Highlights: Other Positives. Some of the negatives.

FY17 FY18 FY19E FY20E

HDFC Bank BUY. Operating performance strong; improved NIM. CMP `2,268 Target Price `2,500. Q4FY2019 Result Update Banking. 3-year price chart

HDFC Bank Ltd. BUY. Investment Rationale. July 2, Volume No.. 1 Issue No. 28

HDFC Bank BUY. Performance Highlights. CMP `2,145 Target Price `2,500. Q3FY2019 Result Update Banking. 3-year price chart. Key financials (Standalone)

IPO NOTE BANDHAN BANK LIMITED

Equitas Holdings. Rating: Target price: ABV: Target CMP. Rating. Rs Rs. 226 BUY

SSG continues to disappoint

Punjab National Bank

BUY CMP (Rs.) 297 Target (Rs.) 385 Potential Upside 30%

Industry: Finance Reco: Subscribe Date: March 09, 2018

FY17 FY18 FY19E FY20E

City Union Bank BUY. 24 February 2016 INR82

HDFC Bank. BUY CMP (Rs.) 1,807 Target (Rs.) 2,000 Potential Upside 11%

HDFC Bank BUY. Performance Highlights. CMP `1,965 Target Price `2,350. Q2FY2019 Result Update Banking. 3-year price chart. Exhibit 1: Key Financials

ICICI BANK Ltd. BUY CMP (Rs.) 334 Target (Rs.) 382 Potential Upside 15% Tide set to turn favourably... For private circulation only

Emkay. Demand environment remain weak. Century Plyboards. Result highlights. Slowdown in plywood segment impacted revenue growth

Recommendation BUY Snapshot CMP (01/08/2011) Rs. 85 Target Rs. 129

RBL Bank BUY. CMP Target Price `573 `690. Quick take BANK. January 7, year price chart

Dewan Housing Finance

Axis Bank BUY. CMP Target Price `620 `750. Update Bank. Earnings to normalize with stabilizing credit costs. 3-year price chart.

Karnataka Bank. Rating: BUY. Bank - Private. Short Note. Brief Financials

Emkay. Bonding strongly; Upgrade to BUY. Pidilite Industries. Stellar all-round show

Can Fin Homes BUY. 23 September 2015 INR821

Axis Bank Ltd. For private circulation only. Volume No.. III Issue No October 08, 2018

Recovery to be gradual; Maintain HOLD

ICICI Bank BUY. Performance Highlights. CMP Target Price `307 `411. 1QFY2019 Result Update Banking. 3-year price chart. Key financials (Standalone)

FY17 FY18 FY19E FY20E

LIC Housing Finance BUY. Performance Highlights. CMP Target Price `532 `630. 3QFY2017 Result Update HFC. 3-Year Daily Price Chart

Aluminium business sale to improve financials; maintain Buy

(INR Crores) FY16 FY17 FY18 FY19E FY20E. Net interest income 15, , , , , Growth% -8% -2% 0% 26% 6%

Canara Bank Securities Ltd

LIC Housing Finance. Source: Company Data; PL Research

Equitas Holdings Limited Investor Presentation Q1FY19 Quarter ended 30 June 2018

ICICI Bank BUY. Performance Highlights. CMP Target Price `328 `416. 3QFY2018 Result Update Banking. 3-year price chart. Key financials (Standalone)

DCB Bank Ltd. 1 P a g e

HFC NEUTRAL. Performance Highlights CMP. `678 Target Price - 1QFY2013 Result Update HFC. Investment Period - Key financials

Bajaj Finance Limited (BFL) NBFC. BUY Rating as per Large Cap 12 months investment period RETAIL EQUITY RESEARCH

BUY. State Bank of India (SBI) Banking RETAIL EQUITY RESEARCH. GEOJIT BNP PARIBAS Research. CMP Rs259 TARGET Rs284 RETURN 10% 22 nd August 2016

Federal Bank BUY. Performance Highlights. Target Price. 1QFY2018 Result Update Banking. Stock Info Sector

Recommendation Not Rated Snapshot Bajaj Finance Ltd (BFL), earlier known as Bajaj Auto Finance Ltd is a

Manappuram Finance (MGFL IN) Healthy operating performance

Key estimate revision. Financial summary. Year

BUY. Structural changes in the making CAPITAL FIRST. Target Price: Rs 920. Key drivers

IDFC Bank. Source: Company Data; PL Research

State Bank of India (SBI)

M&M Financial Services (MMFSL)

HDFC Bank ACCUMULATE. Performance Highlights. CMP `2,348 Target Price `2,671. 4QFY2011 Result Update Banking. Key financials

HDFC Bank Banking BUY RETAIL EQUITY RESEARCH

HDFC Bank. In line results; loan growth holding nicely. Source: Company Data; PL Research

LIC Housing Finance Ltd

Buy Rating as per Mid Cap 12months investment period

Karur Vysya Bank (KVB) KVB IN; KVB.BO

BUY. DCB Bank. Improving Capital Consumption to Aid Returns; Maintain BUY. Target Price: Rs202. Institutional Equity Research

Bank of Baroda (BOB)

ICICI Bank BUY. Performance Highlights. CMP Target Price `343 `460. Q3FY2019 Result Update Banking. 3-year price chart. Exhibit 1: Key Financials

3,746 2,551 3, NIM

L&T Finance Holding Ltd. (LTFH)

Capacity expansion to drive growth; Retain Buy

HOLD Rating as per Large Cap 12 month investment period

South Indian Bank. Institutional Equities. 4QFY18 Result Update. Asset Quality Pain To Ease Hereafter BUY. 15 May 2018

Key estimate revision. Financial summary. Year

Revenues surprise positively; upgrade to BUY

Manappuram Finance. Institutional Equities. 3QFY18 Result Update. The Glitter Is Back In Gold Loans BUY. 9 February 2018

ICICI Bank Banking BUY RETAIL EQUITY RESEARCH

Financial summary. Year

CMP* (Rs) 198 Upside/ (Downside) (%) 12. Market Cap. (Rs bn) 61 Free Float (%) 84 Shares O/S (mn) 308

Punjab National Bank

Muthoot Finance. Institutional Equities. 2QFY18 Result Update BUY

Manappuram Finance. Institutional Equities. 3QFY17 Result Update BUY

Punjab National Bank

BUY. State Bank of India (SBI) Banking RETAIL EQUITY RESEARCH. Outlook getting better. CMP Rs278 TARGET Rs310 RETURN 12% 17 th November 2016

Indian Oil Corporation Ltd.

TVS Motors. Source: Company Data; PL Research

Simplex Infrastructures

Bandhan Bank. On path to build a strong franchise

RESEARCH. Best Buy - 90 Investment Highlights: Key Indicators as on 04/09/2015. Company stands to gain if GDP improves

Bajaj Finserv (BAFINS) 5443

Visaka Industries Ltd

ICICI Bank. Source: Company Data; PL Research

Capital First. Continuing to grow strong. Source: Company Data; PL Research

HDFC Bank Banking. BUY Rating as per Large Ccap 12 month investment period RETAIL EQUITY RESEARCH

BUY RETAIL EQUITY RESEARCH. HDFC Ltd. NBFC. Better placed among housing finance companies (HFCs) GEOJIT BNP PARIBAS Research

Ujjivan Financial Services Ltd.

CanFin Homes. Turning over a new leaf CMP: Rs134. Reco: Buy

Capacity expansion to drive revenue and operating performance

Can Fin Homes Ltd. October 13, CMP (Rs.) 526. Key Events

HCC BUY. Infrastructure April 10, QIP step in the right direction EVENT UPDATE. India Research. Bloomberg: HCC IN Reuters: HCNS.

Bajaj Finance (BAJAF) 5498

Manappuram Finance (MGFL IN) Growth picks up in gold loan; Microfinance drive profitability

BUY. Suprajit Engineering (SEL) Automobiles

State Bank of India (SBI) Banking. BUY Rating as per Large Cap 12 month investment period RETAIL EQUITY RESEARCH

Ahluwalia Contracts (India)

Transcription:

July 20, 2018 Buy Bandhan Bank Industry: BFSI Strong start to current fiscal!! The Bandhan Bank has successfully transitioned itself from largest micro finance lender to universal banking franchise. It is one of the most profitable universal bank currently ROE & ROA of the bank is at 19.5% and 3.6% resp (FY18). Also, it has garnered sizeable retail liabilities within 3 yrs of its operations which is the key strength of the bank. Bank s business model is unique in many ways -1) lowest micro distribution model, cost ratios (35%) are one of the best in the industry 2) asset quality is impeccable 3) strong & vast loyal micro-loan borrower base of 11 mn 4) deeper presence in under-penetrated East/North Eastern markets giving strong visibility of asset growth 5) best in class margin profile In the scenario of dwindling profitability among banks, we expect Bandhan to report strong profitability net profits to grow at a CAGR of 39% over FY18-21E. Return profile is also estimated to be robust ROE/ROA 19%/3.7 over the next 2 yrs. Although valuations looks expensive (trading at 6.8x FY19E and 5.2x FY20E ABV), but rightly so given superior return ratios & strong visibility of asset growth. We initiate a coverage on the stock with BUY rating with target price of 760 (target multiple of 6x on FY20X ABV) giving upside potential of 15% from the current levels. Strong asset growth given dominance presence in under penetrated eastern markets We estimate total AUMs to grow by 35% CAGR over FY18-21E led by micro loans growing by 30% and non-micro loans by 62% over the same period. Huge under penetration in eastern & north eastern markets, higher demand, potential to increase the average ticket size of the loans all these factors put together will boost the overall advances growth of the bank (which will nearly 3x of industry credit growth). Interestingly, within 3 years of banking history, the bank has progressed exceptionally well on deposit growth, it has replaced all the high cost borrowings with low cost deposits from nearly nil deposits in FY15, it has reached sizeable base of 307 bn (Q1FY19). Total retail liabilities & CASA form 80% of total deposits - robust mobilization of retail deposits is perquisite to successful operations as a bank. Best in class margin profile Bank draws one of the highest margins in the industry at 8.3% (calc - FY18) which is led by high yielding micro loans coupled with lower funding costs. This is one of the reason it enjoys healthy return profile. We expect margins would be sustained at current levels of 8.3% over FY18-20E given more downside to lending rates is limited and CASA & retail deposits growth would be healthy. Surprisingly, Q1FY19 spreads of the bank improved by 120 bps qoq to 9.6% - money raised via IPO were utilized to reduce high rated term deposits. Asset quality well placed Despite micro-loans being unsecured in nature, bank has maintained sound asset quality with the gross NPAs and net NPAs at 1.3% & 0.6% respectively (Q1FY19). Strong NPA position is largely driven by its group-based lending model, focus on income generating loans, strong systems to track loan utilization, monitoring credit & ensuring collection, extensive risk management practices (such as lending progressively higher amounts only to members who have built up a track record of good repayment) which taken together have led to low rates of default. Going forward, with the strong growth in the assets we assume marginal increase in NPAs gross NPAs to surge to 2.3% in FY20E from 1.3% in FY18. Anusha Raheja anusha_raheja@lkpsec.com +91 22 6635 1220 Stock Data Initiating Coverage Current Market Price ( ) 660 12 M Price Target ( ) 760 Potential upside (%) 15 FV ( ) 10 Market Cap Full ( bn) 795 52-Week Range ( ) 675 / 455 BSE / NSE Code Reuters / Bloomberg Shareholding Pattern 541153 /BANDHANBNK BANH.NS /BANDHAN:IN YE Mar (Rs.bn) FY18 FY19E FY20E PAT ( bn) 13,456 19,416 26,179 yoy (%) 21.0 44.3 34.8 BV ( ) 78.7 99.8 131.1 ABV (Rs) 77.2 96.8 126.6 P/ABV (x) 8.1 6.8 5.2 ROE (%) 19.5 18.2 19.0 ROA (%) 3.6 3.7 3.7 Gross NPAs (%) 1.3 1.9 2.2 PCR (%) 53.7 54.4 56.5 Relative Price Performance 130 120 110 100 90 80 70 MF 2% FPI 2% Others 14% Promoter 82% 60 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Bandhan Bank S&P BSE Sensex LKP Research

About the Bank Incorporated in West Bengal in 2001, Bandhan Bank, the largest micro-finance lender in the East & North-eastern India, is the only NBFC MFI to receive universal banking license from RBI in 2015. With the balance sheet size of 443 bn, micro-finance loans occupy the dominant share of 85% of its loan book. Currently, it has 2764 DSCs (Doorstep Service Centres), 937 bank branches, 475 ATMs together serving 11 mn micro loan customers & 2.65 mn general banking customers. It has dominant presence in North & North-Eastern States (West Bengal, Assam, Bihar) together accounting for 67% of its branches. Within short term of 3 years of receiving banking license, the bank has successfully transitioned itself from the micro-finance lender to universal bank visible from the fact that it has garnered sizeable share of retail liabilities & CASA forming 80% and 35.5% (Q1FY19) respectively of the total deposits. Post incorporated as bank, it has also started general banking business offering various liabilities & asset products (home loans, PL, gold loans etc.) Micro-loan business began in 2001 as an NGO named Bandhan Konnagar providing microfinance services to socially & economically disadvantaged women in West Bengal. Later, Bandhan Financial Services (BFSL) was formed in 2006 and NGO transferred its micro finance business to BFSL in 2009 and ultimately, BFSL transferred the business to Bandhan Bank. Currently Bandhan Financial Services Ltd is ultimate parent company and which has wholly owned subsidiary called Bandhan Financial Holdings Ltd, which in turn has 82.3% stake in Bandhan Bank The bank has dominant presence in the Eastern India markets 90 80 70 60 50 40 30 20 10 0 North East (%) East India (%) 22 13 16 53 52 59 Branches DSCs Advances Note: Advances breakup as on Sep'17 including IBPC/PSLC Geographical distribution of branches, DSCs and advances of the bank (%) 70 60 50 East India North East Central West North South 53 52 59 40 30 20 10 0 22 16 13 15 11 10 7 8 8 6 5 4 5 4 Branches DSCs Advances 1 Note: Advances breakup as on Sep'17 including IBPC/PSLC LKP Research 2

Timeline of important events in the bank Period Events FY2001 Bandhan Konnagar was formed in 2001 as a non-governmental organisation (NGO) providing microfinance services to socially and economically disadvantaged women in rural West Bengal FY2006 Bharat Financial Services Ltd (BFSL) was formed which started microfinance business FY2009 NGO transferred its microfinance business to BFSL in 2009 FY2015 Bandhan Bank incorporated on 23rd December 2014 as a wholly-owned subsidiary of Bandhan Financial Holdings Ltd FY2016 RBI gave final nod in June 2015 to set up a universal bank The Bank commenced its banking operations from 23 August 2015. Launched greenfield network of 501 branches and 50 ATMs on the first day of commencement of banking operations Started general banking operations and launched several liabilities & assets products FY2017 Reached AUM size of Rs235 bn, active borrowers base of 6.92 mn, CASA ratio of 29%, retail liabilities of 70% in total deposits FY2018 Listed on BSE, NSE Largest microfinance lender with one of the best return profile - ROA 4.1%, ROE 26% (FY18) Reached AUM size of 323 bn, deposit size of 339 bn Group Structure of Bandhan Bank & Shareholding Financial Inclusion Trust North East Financial Inclusion Trust Bandhan Employees Welfare Trust Bandhan Employees Welfare Trust Bandhan Employees Welfare Trust Bandhan Employees Welfare Trust Bandhan Employees Welfare Trust Bandhan Employees Welfare Trust 32.91% 7.82% 14.61% 16.70% 13.59% 2.85% 8.13% 3.39% Bandhan Financial Services Ltd. (BFSL) 100% Bandhan Financial Holding Ltd. (BFHL) 82.28% Bandhan Bank Ltd (BBL) Source: Company LKP Research 3

Return profile of the bank is one of the best in the industry 30 28.5 25.98 ROE (%) ROA %) 25 20 15 10 5 4.47 4.06 0 FY17 FY18 Advances and deposits growing leaps & bounds ( both have doubled in the last 2 yrs) 400 350 300 250 Advances( bn) Deposits ( bn) 339 297 232 200 168 150 124 121 100 50 0 FY16 FY17 FY18 About the micro lending business model of the bank Individual Group Lending business model All the Bandhan s micro loans are group based individual loans where the typical size of group is of 30 members. Loans are usually given to under privileged women for income generating activities. The general requirement for forming a group is that the women must be from the same area and know each other, but family members or relatives cannot be part of the same group. The groups are self-selected and each member is eligible to obtain loans individually. Objective of formation of group is to create social peer pressure to members to repay the loans in case of default. However, other group members would not be liable if a particular member defaults. This is contrary to JLG (joint Lending Group) model, where, other group members are equally liable if a particular member defaults. Group based individual lending is more superior form of lending as compared to JLG or SHG (Self-Help Group) model. Micro-loans are given for the tenure of 1 yr (60% share) or 2 yrs (40% share) period with the maximum loan amount of 1.5 lacs. The average ticket size of the micro-loans is 36000. And nearly 72.3% of the micro finance customers have only single loan account from the bank and most of them are in 6 th cycle of their loans. Doorstep Banking Officer (DBOs) usually source these micro-loans, conduct the primary appraisal and customer visits and make the loan recommendations to the DSC Head. LKP Research 4

Distribution strategy Micro-finance customers are reached through Doorstep Service Centres (DSCs) network, which ensures credit origination and management of microloans. These DSCs are low overhead banking outlets located nearby customers. Each DSC is staffed with one DSC Head, 6-7 Doorstep Banking Officers (DBOs) who are equipped with HHDs (Handheld Devices) connected to core banking system. DBOs are responsible for selection of clients and formation of the groups which is done by doing survey, visiting and interacting with the customers on regular basis. They are also responsible for updating customers about the new offering in the micro banking group meetings. Moreover, they also conduct general awareness programmes such as local polio drives, hygiene and medical camps in their group meetings. The performance of each DSC is monitored by Regional Heads through the Cluster Heads and Cluster Team Members at the cluster level and then through Area Heads and the concerned DSC Heads. Additionally, micro banking team members located at head office provide policy support and direction to the Regional Heads and Cluster Heads. Currently, it has 2764 DSCs (Doorstep Service Centres), 937 bank branches, 475 ATMs together serving 11 mn micro loan customers & 2.65 mn general banking customers. Disbursement of loans Loan applications are filled out during the group meeting based on the recommendation of the group members. The DSC Head is empowered to sanction loans to customers after physical verification of the original KYC documentation, place of business, and the filled-in loan forms. The sanctioned loan amount is disbursed to the savings account of the customer maintained with the linked bank branch and the customer withdraws the amount from the savings account after due biometric authentication on handheld devices. The credit bureau check is also conducted by the Loan Processing Unit, which is part of our Central Processing Unit. Both individual banking (including the opening of savings and current accounts) and information collection at group meetings can be done through handheld devices. Loan recovery & collection of payments The DBO starts at the DSC by downloading of a list of customers from whom an amount is to be collected during the day. Collection of payments due happens at a close vicinity to the customers. Group meetings are held at the relevant location, and collection of due amounts is done using the handheld device. The printed acknowledgement receipt is handed over to the customer as well as manually entered in the group register. The collected amount is credited into the savings account of the customer and the due amount is transferred to the loan account of the respective customer. Each DBO handles four to five such groups daily. Strong loan growth Details of the loan products Currently, micro loans comprise of dominant share of 85.5% in the total AUM size of 323.4 bn (FY18). Retail loans, SME & Small Enterprise Loans (SEL) comprise of 4.4%, 5.1% and 5.1% respectively for the period FY18 lending in these segments has been started recently since last 3 yrs. Retail loans - In retail loans, the bank offers largely entire gamut of retail products which includes home loans, two-wheeler loans, personal loans, LAP, loan against the term deposits and gold loans. Although carrying lower yields as compared to micro loans, retail loans bring the desired diversification & granularity in this asset mix of the bank. SME loans These loans are given to self-employed borrowers which are largely catered by the NBFCs and not by the banks. Nature of typical loans in this segment is business loans, commercial vehicle loans, term loans, equipment loans, working capital loans etc. Ticket size of the advances varies from 10 lacs to 2 crore with average ticket size being 30 lacs. 80% of the SME loan book comprise of term loans. The average yield in this segment is 12-13%. LKP Research 5

Small Enterprise Loans (SEL) These loans are basically given to borrowers who have graduated from the micro finance lending segment and have bigger requirements. The loans are collateral-free drawn for income generation activities loans which could be in the form of working capital or assets creation for business or short-term business requirements. Ticket size of the loans is 1-10 lacs with average ticket size being 3 lacs and average yield 16%. Details of the loan products of the bank Micro-loans Retail Loans Small Enterprise Loans (SEL) SME Loans These loans are given to Brief Micro loans are group based individual loans where the typical size of group is of 30 members. Loans are usually given to under privileged women for income generating activities. In retail loans, the bank offers largely entire gamut of retail products which includes home loans, two-wheeler loans, personal loans, LAP, loan against the term deposits and gold loans These loans are basically given to borrowers who have graduated from the micro finance lending segment and have bigger requirements self-employed borrowers which are largely catered by the NBFCs and not the banks. Nature of typical loans in this segment is business loans, commercial vehicle loans, term loans, equipment loans, working capital loans etc. % Share (FY18) 85.50% 4.40% 5.10% 5.10% Avg. yield 18.40% Varies depending on products 16% 12-13% Ticket size of the loans Upto 150000-1-10 lacs 10 lacs - 2 crore Avg. ticket size of the loans 36000-3 lacs 30 lacs Strong asset growth In order to diversify the asset mix, the bank has grown these non-micro loans since the formation of the bank. Along-with diversification, these products are also likely to bring granularity & more stability to the current loan mix of the bank. Given lower base & management aggressive approach, we expect strong growth asset growth in non-micro loans to continue at CAGR of 62% FY18-21E. Share of these loans which is 15% currently would surge to 25% by FY21E. Not only this, we estimate healthy growth in the micro loans as well given huge under penetration, higher demand and bank s sizeable reach & presence to cater to rising demand. We expect micro loans to grow at a CAGR of 30% over FY18-21E resulting in blended AUM growth of 35% for the same period. Other factors that would contribute to growth would be relatively smaller size of balance sheet, potential to increase the average ticket size of the loans. Higher asset growth of 30%+ is very much likely in the foreseeable future over next 4-5 yrs. LKP Research 6

Strong AUM growth expected (Rs.mn) FY16 FY17 FY18 FY19E FY20E FY21E Total Advances 1,55,800 2,35,400 3,23,390 4,49,382 6,17,643 8,36,192 Micro Loans 1,54,200 2,13,900 2,76,500 3,64,980 4,81,774 6,35,941 Non-Micro Loans 1,600 21,500 46,890 84,402 1,35,869 2,00,251 -Retail 600 3,900 14,100 25,380 35,532 49,745 -SME 1,000 7,100 16,400 29,520 50,184 75,276 -Small Enterprise Loans - 10,500 16,390 29,502 50,153 75,230 Growth (yoy %) Total Advances - 51.1 37.4 39.0 37.4 35.4 Micro Loans - 38.7 29.3 32.0 32.0 32.0 Non-Micro Loans - 1243.8 118.1 80.0 61.0 47.4 -Retail - 550.0 261.5 80.0 40.0 40.0 -SME - 610.0 131.0 80.0 70.0 50.0 -Small Enterprise Loans - - 56.1 80.0 70.0 50.0 % Share Total Advances 100.0 100.0 100.0 100.0 100.0 100.0 Micro Loans 99.0 90.9 85.5 81.2 78.0 76.1 Non-Micro Loans 1.0 9.1 14.5 18.8 22.0 23.9 -Retail 0.4 1.7 4.4 5.6 5.8 5.9 -SME 0.6 3.0 5.1 6.6 8.1 9.0 -Small Enterprise Loans 0.0 4.5 5.1 6.6 8.1 9.0 We expect strong asset growth 900 800 700 600 500 400 300 200 100 0 Advances ( bn) Growth (%) 76.5 786 40.7 574 35.4 418 36.8 37.4 297 168 FY17 FY18 FY19E FY20E FY21E 90 80 70 60 50 40 30 20 10 0 Sell down of assets Nearly 95% of the assets of the bank qualify for the PSL status vs. RBI stipulation of 40%. The bank has a strategy to sell down the assets over & above PSL requirement to other banks who are falling short of PSL targets. Sell down of assets happens in two forms either via IBPC (Inter Bank Participatory Certificates) or PLSC (Priority Sector Lending Certificates). In IBPC, the bank sells the assets to other banks whereby 60% of the assets are retained by the seller and 40% is transferred to the buyer. However, entire interest income on the asset sold is booked by the seller in their own books. Assets sold are typically of lower duration for e.g. 90 days and the purchasing bank buys it at the quarter end to meet their PSL targets. LKP Research 7

Another benefit seller bank receives is cheaper funds at 4%. Being short term in nature, funds are utilized for g-sec investments, whereby the net gain for the bank could be ~2.5%. Nearly 80% and 20% of total sell down of assets was done via IBPC in FY17 & FY18 respectively. Incremental sell down are more in the form of PLSC than IBPC. In PLSC deals, the bank sells the assets to purchasing bank whereby the former does not retains the assets in its books. This type of sell down is as good as securitization. The seller bank gets fee income to the tune of 1-3%. During FY18, the bank s PSL went up from 164.6 bn (net of IBPC of 66.8 bn) in FY17 to 282 bn (net of IBPC of 24.3 bn) in FY18, of which 164.5 bn was sold to other banks falling short of PSL targets. Income pools from these sell downs boost the profitability of the bank enormously as assets largely not retained in its own balance sheet while fee income is booked giving boost to ROA/ROE of the bank. This is one of most important USP of the bank in the current times when other banks are having considerable shortage to meet their PSL targets. Details of the assets that have been sold by the bank (Rs.mn) FY17 FY18 IBPC 92,000 55,000 PLSC 0 1,64,540 Total Sell Down of Assets 92,000 2,19,540 as a % of AUMs 39.1 67.9 Successfully transitioned itself from NBFC MFI to Universal Bank Within 3 years of banking history, the bank has progressed exceptionally well on deposit growth from nearly nil deposits in FY15, it has reached sizeable base of 307 bn (Q1FY19). It has replaced all the high cost borrowings with low cost deposits. The bank had opened 500 branches in a single day on the first day of its operations as a bank. It has established itself as a durable brand reflected from the fact that retail liabilities have shown stupendous growth CASA & retail deposits now have sizeable chunk of 35.5% and 80% in total deposits. The bank has initiated various proactive efforts viz. offering differential & higher deposit rates, expansion in different geographies, introduction of the corporate salary accounts, adding value to the liability product schemes, all this has enabled robust mobilization of retail deposits which is perquisite to successful operations as a bank. We expect CASA ratio would be sustained at current levels going forward 40.0 35.0 30.0 25.0 20.0 CASA Ratio (% of total deposit) 34.3 35.0 35.0 35.0 29.4 21.6 15.0 10.0 5.0 0.0 FY16 FY17 FY18 FY19 FY20 FY21 LKP Research 8

CASA + Retail liabilities now have sizeable share of 80% (Q1FY19) in total deposits vs. 38% two years back 120.0 Non-retail liabilities Retail Liabilities CASA (% of total deposit) 100.0 80.0 60.0 40.0 20.0 0.0 20.0 29.3 28.1 62.0 44.5 41.3 37.6 16.4 29.4 34.3 35.5 21.6 FY16 FY17 FY18 Q1FY19 Potential for higher other income growth Apart from core fee income which contributed 57% to the total other income, fee income from sell down of assets have meaningful share of 21% (FY18). Going forward, generous sell down of assets is expected in future years as well contributing nearly one-fourth in total other income. Along-with this, the bank has introduced range of products & services which can boost its third party distribution fee income. The bank has started distribution of life insurance, general & health insurance & mutual fund products. For life insurance policy, tie-up is done with Bajaj Allianz Life & HDFC Standard Life; general insurance New India Assurance & Bajaj Allianz General Insurance; health insurance Apollo Munich; mutual funds ICICI MF, HDFC MF, UTI MF & Franklin Templeton MF. In addition to this, it has commenced inward & outward foreign currency remittances. Since all these services are recently introduced, leveraging of these products to entire customers base would get reflected in coming years. Hence, potential for strong growth in other income is very much likely going forward. We estimate total other income to grow at a CAGR of 31% over FY18-21E contributing 18% to the total income of the bank. We have conservatively build our estimates positive surprises on other income side are very much likely. Superior cost ratios Despite micro lending business is cost heavy model, Bandhan has one of the lowest cost to income ratio at 35% (FY18) much lower than its competitors. Ratio has been lowest notwithstanding the bank has aggressively expanded its distribution reach aggressively over the last 3 yrs. Factors contributing to superior ratios are a) employees per branch for the bank is low at 7.6 b) employee cost per person is also less at 2.4 lacs. In our view, the bank has significant advantage due to its dominance presence in East India which has low per capita income. This helps the bank to hire employees at lower costs c) DSCs are also low overhead banking outlets their cost is kept at bare minimum levels. Each DSC has one DSC Head, 6-7 DBOs and is equipped with one internet enabled computer & 6-7 chairs. In addition to this, productivity of the employees is also reasonably good business per employee is 22.6 mn. Going forward, we expect benefits of cost advantage to continue in future as well. LKP Research 9

Bandhan has one of the lowest distribution cost model 60.0 55.0 50.0 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 56.9 Cost to Income ratio (%) 35.0 36.3 30.9 29.8 32.1 FY16 FY17 FY18 FY19E FY20E FY21E Operating expenses to avg. assets of the bank 4.5 4.0 4.1 Operating Expenses / Avg. Assets (%) 3.5 3.5 3.2 3.0 2.5 3.0 2.8 2.0 FY17 FY18 FY19E FY20E FY21E Best in class margin profile Bank draws one of the highest margins in the industry at 8.3% (calc - FY18) which is led by high yielding micro loans coupled with lower funding costs. This is one of the reason it enjoys healthy return profile. However, the bank had seen fall in the margins from 9.8% in FY17 to 8.3% in FY18 which was led by many factors namely 1) since becoming a bank, it has reduced the interest rates on microloans from 22.4% in Aug 2015 to 18.4% in March 2018. In order to keep lending rates competitive & pass on the benefits of reduced funding costs to borrowers, the bank has slashed its microloans lending rates. However, going forward, management is not likely to bring down the rates further or rather any potential increase in funding costs would be passed onto borrowers. Also, the bank had done more of PSLC sell down of assets in FY18 than IBPC assignments as in former case net gains gets booked in other income while latter above NII level. This partially impacted the margins. However, going forward, we expect margins would be sustained at current levels of 8.3% over FY18-20E given more downside to lending rates is limited and CASA & retail deposits growth would be healthy. Surprisingly, Q1FY19 spreads of the bank improved by 120 bps qoq to 9.6% - money raised via IPO were utilized to reduce high rated term deposits. LKP Research 10

We expect margins to sustain at current levels 10.0 9.8 NIM (%) 9.5 9.0 8.5 8.0 8.3 8.3 8.2 7.5 7.0 FY17 FY18 FY19E FY20E Asset quality well placed Despite micro-loans being unsecured in nature, bank has maintained sound asset quality with the gross NPAs and net NPAs at 1.3% & 0.6% respectively (Q1FY19). Strong NPA position is largely driven by its group-based lending model, focus on income generating loans, strong systems to track loan utilization, monitoring credit & ensuring collection, extensive risk management practices (such as lending progressively higher amounts only to members who have built up a track record of good repayment) which taken together have led to low rates of default. Going forward, with the strong growth in the assets we assume marginal increase in NPAs gross NPAs to surge to 2.3% in FY20E from 1.3% in FY18. Alongwith this, we have estimated credit costs at 85 bps for FY19E. Solvency Ratios (%) FY17 FY18 FY19E FY20E FY21E Gross NPAs ( ) 863 3,731 7,739 12,387 18,337 Net NPAs ( mn) 612 1,729 3,526 5,385 7,765 Provisions ( mn) 251 2,002 4,214 7,002 10,572 Gross NPAs / Gross Advances (%) 0.5 1.3 1.9 2.2 2.3 Net NPAs / Net Advances (%) 0.4 0.6 0.8 0.9 1.0 Credit Cost (NPA) (%) 0.3 0.8 0.9 0.9 0.9 Credit Cost (NPA + SA) (%) 0.5 1.1 1.1 1.1 1.1 Provisions Coverage Ratio (%) 29.1 53.7 54.4 56.5 57.7 Current rich valuations likely to sustain The Bandhan Bank has successfully transitioned itself from largest micro finance lender to universal banking franchise with superior return ratios. The bank currently has one of the best return ratios in the industry. ROA and ROE of the bank were at 3.6% and 19.5% (calc) respectively for the year FY18. We are upbeat on the unique business model of the bank given 1) highest & most profitable micro finance portfolio among banks & NBFCs put together 2) strong visibility of asset growth given under penetrated East/North Eastern markets 2) best in class margin profile to continue 3) low cost distribution model 4) well placed asset quality. In the scenario of dwindling profitability among banks, we expect Bandhan to report strong profitability net profits to grow at a CAGR of 39% over FY18-21E. Return profile is also estimated to be robust ROE/ROA 19%/3.7 over the next 2 yrs. Although valuations looks expensive (trading at 6.8x FY19E and 5.2x FY20E ABV), but rightly so given superior return ratios & strong visibility of asset growth. We initiate a coverage on the stock with BUY rating with target price of 760 (target multiple of 6.0x on FY20X ABV) giving upside potential of 15% from the current levels LKP Research 11

Brief about the team at Bandhan Bank Personnel Qualification Work Experience Chandra Shekar Ghosh Founder, MD & CEO Founder of BFSL, has ~25 years of experience in the field of microfinance and development Awarded Entrepreneur of the Year by Forbes and ET in 2014 Sunil Samdani CFO 15+ years of experience in financial industry Previously served as Head of Business Analytics and Strategy at DCB and as CFO at Karvy Bhaskar Sen Director Ex CMD of United Bank of India, Ex ED of Dena Bank Instrumental in establishing full-fledged treasury operation in UBI Boggarapu Sambamurthy Director Ex CMD of Corporation Bank, Ex ED of Indian Bank Chintaman Mahadeo Dixit Krishnamurthy Venkata Subramanian Ranodeb Roy Director Director Director 4 decades of experience in banking sector, previously worked with LIC & Indian Bank Associate Professor of Finance, ISB, Hyderabad. Part of expert committee on governance of banks for RBI Founder of RV Capital Management Private Limited, Singapore, he was earlier heading Fixed Income Asia Pacific in Morgan Stanley Asia) Singapore Sisir Kumar Chakrabarti Director Ex DMD of Axis Bank, 38 yrs of experience Snehomoy Bhattacharya Director Previously worked at Axis Private Equity, significant experience in public and private banking sector T. S. Raji Gain Director Previously worked with NABARD, significant experience in the field of agricultural and rural Source: Company LKP Research 12

Quarterly Financials - Q1FY19 (. Mn) Q1FY19 Q1FY18 yoy (%) Q4FY18 qoq (%) Interest earned 15,562 11,534 34.9 13,506 15.2 -Interest/discount on advances/bills 12,981 7,929 63.7 11,785 10.1 -Income on investments 1,509 1,042 44.8 1,365 10.6 -Interest on bal. with RBI 346 741-53.3 96 261.7 -Others 726 1,821-60.1 260 178.9 Interest expenses 5,190 4,099 26.6 4,872 6.5 Net Interest Income (NII) 10,372 7,435 39.5 8,634 20.1 Other Income 2,107 1,220 72.8 2,034 3.6 Total income 12,479 8,654 44.2 10,668 17 Operating expenses 4,273 3,086 38.5 3,630 17.7 -Employee cost 2,489 1,632 52.5 1,886 31.9 -Other operating expenses 1,785 1,454 22.8 1,744 2.4 Operating profit 8,205 5,569 47.3 7,038 16.6 Provision for contingencies 800 556 43.8 1,091-26.6 PBT 7,405 5,012 47.7 5,947 24.5 Provision for taxes 2,588 1,747 48.1 2,069 25.1 Net profit 4,817 3,266 47.5 3,879 24.2 Equity 11,928 10,951 8.9 11,928 0 EPS ( ) 4.0 3.0 35.4 3.3 24.2 Ratios (%) Int. exp/int earned (%) 33.4 35.5-36.1 - Cost/Income ratio (%) 34.2 35.7-34 - Gross NPAs ( ) 3,883 1,752 121.7 3,731 4.1 Net NPAs ( ) 1,942 1,055 84.2 1,729 12.3 Gross NPAs (%) 1.26 0.93-1.25 - Net NPAs (%) 0.64 0.6-0.6 - ROA (%) 1.1 1.1-1 - CAR (%) 32.6 26.1-31.5 - Provision coverage (%) 50 39.8 53.7 LKP Research 13

Profit & Loss Statement (. Mn) FY17 FY18 FY19E FY20E FY21E INTEREST EARNED 39,087 48,023 68,110 92,777 1,25,039 Interest/Discount on advances/bills 31,214 38,236 57,204 78,394 1,06,113 Income from Investment 4,281 4,900 7,712 11,013 15,072 Interest on Balances with RBI & Others 790 1,416 1,500 1,600 1,700 Others 2,802 3,471 1,694 1,769 2,154 INTEREST EXPENDED 15,052 17,701 25,375 35,603 49,606 Interest on Deposits 12,911 16,816 24,638 34,575 48,347 Interest on RBI/Inter-Bank Borrowings 1,588 516 400 500 500 Others 553 369 336 528 759 Net Interest Income (NII) 24,035 30,322 42,736 57,174 75,433 OTHER INCOME 4,114 7,062 9,189 12,143 15,992 TOTAL INCOME 28,149 37,384 51,925 69,316 91,425 OPERATING EXPENSES 10,220 13,083 16,675 21,388 27,211 OPERATING PROFIT 17,929 24,301 35,250 47,928 64,215 PROVISIONS 884 3,742 5,563 7,899 9,354 Provision for Non-Performing Assets 478 2,261 3,566 5,266 7,238 Profit Before Tax (PBT) 17,045 20,559 29,687 40,030 54,861 PROVISIONS FOR TAXES 5,925 7,103 10,272 13,850 18,982 PAT 11,120 13,456 19,416 26,180 35,879 (% change) 304.0 21.0 44.3 34.8 37.1 EPS 10.2 11.3 16.3 21.9 30.1 Total Paid-Up Capital 10,951 11,928 11,928 11,928 11,928 Balance Sheet (. Mn) FY17 FY18 FY19E FY20E FY21E APPLICATION OF FUNDS Cash & bank balances 60,121 28,371 23,119 25,480 32,997 Bal. with banks and money at call & short notice 13,529 26,735 22,082 36,898 48,185 Advances 1,68,391 2,97,130 4,17,925 5,74,408 7,86,021 Investments 55,165 83,719 1,27,565 1,66,125 2,25,355 Fixed Assets 2,518 2,381 2,834 3,429 4,149 Other Assets 2,637 4,764 7,193 10,070 14,099 TOTAL ASSETS 3,02,361 4,43,101 6,00,718 8,16,410 11,10,806 SOURCES OF FUNDS Total Paid-Up Capital 10,951 11,928 11,928 11,928 11,928 RESERVES & SURPLUS 33,513 81,891 1,07,089 1,44,453 1,95,517 DEPOSITS 2,32,287 3,38,690 4,67,392 6,40,327 8,77,248 BORROWINGS 10,289 2,850 4,625 7,113 9,746 OTHER LIABILITIES & PROVISIONS 15,320 7,741 9,684 12,589 16,366 TOTAL LIABILITIES 3,02,361 4,43,101 6,00,718 8,16,410 11,10,806 LKP Research 14

Ratios A) Efficiency Ratios (%) FY17 FY18 FY19E FY20E FY21E Int. exp/int. earned 38.5 36.9 44.4 45.4 46.7 NII / Total Income 85.4 81.1 82.3 82.5 82.5 Other income / Total Income 14.6 18.9 17.7 17.5 17.5 Fee income / Other income 77.9 57.3 61.4 63.9 66.4 Fee income / Total Income 11.4 10.8 10.9 11.2 11.6 Cost / Income 36.3 35.0 32.1 30.9 29.8 C-D ratio 72.5 87.7 89.4 89.7 89.6 I-D ratio 23.7 24.7 27.3 25.9 25.7 Loan / Assets ratio 55.7 67.1 69.6 70.4 70.8 Deposits / Assets ratio 76.8 76.4 77.8 78.4 79.0 CASA / Total Deposits 29.4 34.3 35.0 35.0 35.0 B) Spreads (%) FY17 FY18 FY19E FY20E FY21E Yield on Assets 15.9 13.1 11.1 11.2 11.2 Yield on Advances 21.3 16.4 16.0 15.8 15.6 Yield on Investments 9.2 7.1 7.3 7.5 7.7 Cost of Funds 7.6 6.1 6.2 6.4 6.5 Cost of Deposits 7.3 5.9 6.1 6.2 6.4 Cost of Earning Assets 6.1 4.8 4.9 5.1 5.2 Net Interest Spread 8.3 7.0 4.9 4.9 4.7 Net Interest Margin 9.8 8.3 8.3 8.2 8.0 C) Solvency Ratios (%) FY17 FY18 FY19E FY20E FY21E Gross NPAs ( ) 862.6 3,731.4 7,739.2 12,386.7 18,337.0 Net NPAs ( ) 611.7 1,729.0 3,525.7 5,384.7 7,764.8 Provisions ( mn) 250.8 2,002.3 4,213.5 7,002.0 10,572.2 Gross NPAs / Gross Advances (%) 0.5 1.3 1.9 2.2 2.3 Net NPAs / Net Advances (%) 0.4 0.6 0.8 0.9 1.0 Credit Cost (%) 0.3 0.8 0.9 0.9 0.9 Credit Cost (%) 0.5 1.1 1.1 1.1 1.1 Provisions Coverage Ratio (%) 29.1 53.7 54.4 56.5 57.7 Ratios D) Measures of Investment FY17 FY18 FY19E FY20E FY21E EPS ( ) 10.2 11.3 16.3 21.9 30.1 BV ( ) 40.6 78.7 99.8 131.1 173.9 Adjusted BV ( ) 40.0 77.2 96.8 126.6 167.4 DPS ( ) 0.0 0.0 1.0 1.0 1.0 Avg. ROE (%) 28.6 19.5 18.2 19.0 19.7 Avg. ROA (%) 4.4 3.6 3.7 3.7 3.7 P/E (x) 65.0 58.5 40.5 30.1 21.9 P/BV (x) 16.3 8.4 6.6 5.0 3.8 P/ABV (x) 16.5 8.5 6.8 5.2 3.9 Dividend Payout ratio (%) 0.0 0.0 6.1 4.6 3.3 Effective tax rate (%) 34.8 34.6 34.6 34.6 34.6 LKP Research 15

E) Breakdown of ROA (%) FY17 FY18 FY19E FY20E FY21E Interest Income 15.6 12.9 11.0 11.1 11.0 Interest expenses 6.0 4.7 4.9 5.0 5.1 NII/avg assets 9.6 8.1 8.2 8.1 7.8 Non-NII/avg. assets 1.6 1.9 1.8 1.7 1.7 Total Income 11.3 10.0 9.9 9.8 9.5 Operating exp/avg. assets 4.1 3.5 3.2 3.0 2.8 Operating profit/avg assets 7.2 6.5 6.8 6.8 6.7 Provisions/avg. assets 0.4 1.0 1.1 1.1 1.0 PBT/avg. assets 6.8 5.5 5.7 5.6 5.7 Tax/avg. assets 2.4 1.9 2.0 2.0 2.0 PAT/avg. assets 4.4 3.6 3.7 3.7 3.7 Leverage 6.8 4.7 5.0 5.2 5.4 F) Growth Rates (%) FY17 FY18 FY19E FY20E FY21E Interest Income 147.2 22.9 41.8 36.2 34.8 Interest Expenses 132.1 17.6 43.4 40.3 39.3 NII 157.7 26.2 40.9 33.8 31.9 Other Income 174.5 71.6 30.1 32.1 31.7 Total Income 160.0 32.8 38.9 33.5 31.9 Operating Income 284.1 35.5 45.1 36.0 34.0 Net Profit 304.0 21.0 44.3 34.8 37.1 Deposits 92.2 45.8 38.0 37.0 37.0 Advances 35.4 76.5 40.7 37.4 36.8 LKP Research 16

DISCLAIMERS AND DISCLOSURES LKP Sec. ltd. (CIN-U67120MH1994PLC080039, www. Lkpsec.com) and its affiliates are a full-fledged, brokerage and financing group. LKP was established in 1992 and is one of India's leading brokerage and distribution house. LKP is a corporate trading member of Bombay Stock Exchange Limited (BSE), National Stock Exchange of India Limited(NSE), MCX Stock Exchange Limited (MCX-SX).LKP along with its subsidiaries offers the most comprehensive avenues for investments and is engaged in the businesses including stock broking (Institutional and retail), merchant banking, commodity broking, depository participant, insurance broking and services rendered in connection with distribution of primary market issues and financial products like mutual funds etc. LKP hereby declares that it has not defaulted with any stock exchange nor its activities were suspended by any stock exchange with whom it is registered in last five years. However, SEBI and Stock Exchanges have conducted the routine inspection and based on their observations have issued advice letters or levied minor penalty on LKP for certain operational deviations in ordinary/routine course of business. LKP has not been debarred from doing business by any Stock Exchange / SEBI or any other authorities; nor has its certificate of registration been cancelled by SEBI at any point of time. LKP offers research services to clients. The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report. Other disclosures by LKP and its Research Analyst under SEBI (Research Analyst) Regulations, 2014 with reference to the subject company(s) covered in this report-: Research Analyst or his/her relative s financial interest in the subject company. (NO) LKP or its associates may have financial interest in the subject company. LKP or its associates and Research Analyst or his/her relative s does not have any material conflict of interest in the subject company. The research Analyst or research entity (LKP) has not been engaged in market making activity for the subject company. LKP or its associates may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of Research Report. Research Analyst or his/her relatives have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of Research Report: (NO) LKP or its associates may have received any compensation including for investment banking or merchant banking or brokerage services from the subject company in the past 12 months. LKP or its associates may have received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months. LKP or its associates may have received any compensation or other benefits from the Subject Company or third party in connection with the research report. Subject Company may have been client of LKP or its associates during twelve months preceding the date of distribution of the research report and LKP may have co-managed public offering of securities for the subject company in the past twelve months. Research Analyst has served as officer, director or employee of the subject company: (NO) LKP and/or its affiliates may seek investment banking or other business from the company or companies that are the subject of this material. Our salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and investing businesses may make investment decisions that may be inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all of the foregoing, among other things, may give rise to real or potential conflicts of interest including but not limited to those stated herein. Additionally, other important information regarding our relationships with the company or companies that are the subject of this material is provided herein. This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject LKP or its group companies to any registration or licensing requirement within such jurisdiction. Specifically, this document does not constitute an offer to or solicitation to any U.S. person for the purchase or sale of any financial instrument or as an official confirmation of any transaction to any U.S. person. Unless otherwise stated, this message should not be construed as official confirmation of any transaction. No part of this document may be distributed in Canada or used by private customers in United Kingdom. All trademarks, service marks and logos used in this report are trademarks or registered trademarks of LKP or its Group Companies. The information contained herein is not intended for publication or distribution or circulation in any manner whatsoever and any unauthorized reading, dissemination, distribution or copying of this communication is prohibited unless otherwise expressly authorized. Please ensure that you have read Risk Disclosure Document for Capital Market and Derivatives Segments as prescribed by Securities and Exchange Board of India before investing in Indian Securities Market. In so far as this report includes current or historic information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed. All material presented in this report, unless specifically indicated otherwise, is under copyright to LKP. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of LKP. LKP Securites Ltd, 13th Floor, Raheja Center, Free Press Road, Nariman Point, Mumbai-400 021. Tel -91-22 - 66351234 Fax- 91-22-66351249. www.lkpsec.com